It is not a secret that sometimes the estate agents are not your best friends when it comes to buying. Their interest will not exactly match yours and they might mislead you just trying to sell whatever they will earn commission from. This post will give you some guidelines how to chose with whom to work – at least to the best of my knowledge.

Things you should look for:

1. Office. Nowadays everybody has a website, even those who don’t have office but their office will tell you more than you can imagine. See in what area it is, how long the company has been there, how big it is, how many people are working in it and how many properties they can show you with a short notice (usually in the next day or two). Small office can be scary but a big one can be scary too so the truth as always is in the middle.

2. Land line phone numbers. Again nowadays everybody has a mobile phone but how many landlines your estate agent has? This is also good to check the company on the internet (google of course) as they might have changed their name, domain, etc.

3. Recommendations. Ask for recommendations from other clients and don’t be ashamed to check them. Very often estate agents present fake recommendations that are not true. Ask for contact details of the people/companies who have given such recommendations and speak with the directly.

4. Membership in organisations. This will give you another way to check the company. You can call the organisation directly and ask for the company or look for other companies-members of that organisation and try to get more information from them.

5. Contract. See if the estate agent will ask you to sign a contract for the services (usually all of them will) and how the payment of the commission (if there is such) is arranged in the contract. If you notice that the contract is with another company and the payment is to be made to someone else or you are offered to pay in cash “in order to save the VAT” then stay away. As with any contract it will be good to be checked also by a lawyer before you sign it so take your time and don’t rush to sign anything until you have second opinion.

6. Developer/Seller. This is very important one! Many developments in Bulgaria were advertised by estate agents who later one turn to be also their developers or owners which is the reason why there are so many disappointments at the moment. Strictly speaking this is pure conflict of interest but the problem is that you will not know it unless you check the developer/seller thoroughly. There is no easy way to do this and for sure you will need a lawyer but you will need one anyway and this is usually part of the conveyancing part so don’t ever think of missing this step. You have been warned.

7. Lucky seven. You will need luck. Usually the best deals are combination of many elements but for sure luck is always one of them. And remember what they say about real estates: location, location, location. And the best of luck. But don’t forget the other six.

Probably the moment now is not so good for such guide but it is better to read it later than never. The crisis will not last forever and the real estate market will soon develop again and when this time comes it will be good to read this information. Who knows?

Related posts:

1. Five biggest real estate investors’ mistakes in Bulgaria
2. Real Estate Bubble wiped out BGN 83 bn from Bulgarian households
3. Investing in Bulgaria

Holiday real estate offers exceed demand several times, prices go back to their levels from 2005

The winter real estate market is the most affected by the economic crisis, shows a survey of the investment company GreenLife. This is the reason for the emergence of many problematic projects in the construction sector, some of which were frozen and others finished with the risk of remaining unutilized. Last season, investors saw as their only option to turn the projects into hotels…

Read the full article at klassa.bg

Related posts:

1. Real Estate Bubble wiped out BGN 83 bn from Bulgarian households
2. Bribes in the public sector exceed BGN 1 bn in 2009
3. When the prices go down

Bribes in the public procurement sector exceed BGN 1 bn in 2009

bribe

Over BGN 1 bn in bribes were given for the conclusion of public procurement contracts in 2009, estimated for Klassa Kamen Kolev, Deputy Chairman of BIA (Bulgarian Industrial Association). According to the Chamber’s estimates and those of other independent experts, the total inefficiency of the contracts was between 10% and 20%, and violations were established in at least 30% of the projects under the European operational programmes.

Read the full article in Klassa newspaper.

Related posts:

1. Real Estate Bubble wiped out BGN 83 bn from Bulgarian households
2. Entrepreneurs at winter resorts become hotel keepers

As written earlier Bulgaria is considered by some to be the Russian Trojan horse in EU and the recent development related to the hearings of commissioners designate Rumiana Jeleva are probably the first proof.

Rumiana Jeleva

The whole saga revealed some sad side of the Bulgarian reality and things that people coming to Bulgaria sooner or later discover – strange relations with companies, individuals and politicians. Aside from her English language skills and the competence in the area (which were not even close to the expected level) she continuously repeated that there is nothing wrong with her business affairs while for everyone it was obvious that the things are far away from what stated. The drama even led to asking external sources to confirm her statements which put Bulgaria in embarrassing position. At the same time her lack of elementary understanding of ethics and moral and her stubbornness managed to put in question the entire European Commission. At the end she needed to be reminded from the highest level that her resignation would be the only acceptable move if she does not want to face another fiasco and if she does not want to continue embarrass other people who were misled to believe that she is innocent.

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This article is translated from the original publication in Dnevnik newspaper by Elenko Elenkov which is here.

You do online shopping?

Here is what you should do in order to release a shipment from the (Sofia) Customs in Bulgaria. As of 1 January 2010 the value on which you have to pay VAT for any packages received outside EU is 15 EUR. This means that what is described below is most likely to happen for any online purchase which value exceeds the cost of a pair of socks.

The place where all packages from abroad arrive (in the described case it was a pack of t-shirts) is called “Sofia Customs Post Office” and is located at 84 Veslets Str. Near the train station.

Вижте по-голяма карта

And so on the note is says that I should go to… Counter 23

Although the building of the Customs is renovated and looks more or less OK the counters from 23 to 31 are located in an extension which looks like scenery for The X Files. Exactly the same as the one where the American Government is keeping the proofs for extraterrestrial life. You are passed by people with carts carrying boxes labelled with the familiar world brands such as Еbay, Аmazon, USPS, UPS, etc.

In the best case scenario on Counter 23 you should pay the mysterious “fee for values” amounting to 4 BGN and to collect your package. My case is not this one since I ordered t-shirts from the USA.

The lady working on the counter looked at me suspiciously and says – “your package needs to be inspected. I will call” and at the moment she said so she called. In a little while came a person without uniform who asked me: “Is this about you?”

“I guess so”

“I will call an inspector”

“Well, fine.”

The guy disappeared and came shortly to call me to a hidden door leading to

Counter 30, but this time inside

This counter is something like a internal shack in which are located counters from 26 to 31. It is sounded by fan-heaters because there is no central heating.

I am now on the territory of the Customs Officers and I can see the people standing outside. Suddenly a Customs Officer came together with the person who “took me” from Counter 23 and they brought my box with t-shirts. Both of them had Stanley Knives with which they opened my box.

Inside, of course, they found t-shirts, invoice and couple of pins – a gift from the online shop.

“What is this?” asked the Customs Officer.

“T-shirts,” I answered in reply, “they should have be Christmas gifts but…” I was trying to build relation with the customs officers.

“What are these pins?”

“Well, pins. A gift. The shop gives them with every purchase.”

“Why they are not on the invoice? They don’t have value.”

“I guess they have some value,” I was telling them, “but they are gift. I haven’t ordered them.” and I start feeling that I am entering into some useless discussion because the officers think that I a doing some crazy smuggling of pins from California.

“Your need to get an EORI number and to fill a declaration for customs duties and VAT,” the Customs Officer said firmly.

“But the value does not exceed 150 EUR” I told him thinking that I know my rights.

“As of the new year the VAT is calculated on any package for individuals which value exceeds 15 EUR.”

“But the package was here before the new year?” I said with hope.

“Look, I cannot give you the package unless you pay the VAT.”

“ОК”, I said anticipating that the worst is yet to come.

“Go to counter 17 to get an EORI number and then come back here for declaration.”

“What is this EORI?”

“They will tell you…”

Counter 17 – registry office

At Counter 17 nobody wants to tell me what EORI is, but I have to fill one form with all my personal data that you can imagine. The lady there reviews the form and then she told me “Now you have to go and make a copy of your ID card.”

“Why do I need to copy it?” I asked knowing my rights under the Law for Protection of Perosnal Data. “All data is here and you can make sure that everything is correct after you compare them with my ID card.”

“Don’t argue with me. These are the requirements.”

“What are these requirements. In which law?” I asked again.

“Look, we have been on a special training in order to be able to work with personal data” said the lady.

“That’s wonderful but where does it say that you need to photocopy my ID card?”

The lady waived with her hand and left the matter to another lady to deal with me. The other lady knocked on the window on the counter showing me an excerpt from some magazine hanged there. In it was stated that according to Decree No. 4 from 3 June 2009 issued by the Minister of Finance the EORI register should be made for all entities in the Community. Probably “Community” means EC. I guess that this is something like an ID number but for the Customs. Great.

“But this is an excerpt from a magazine”, I told her.

“This is Customs Chronicle, Sir!” said the lady indignantly.

Customs Chronicle

“There is no doubt that this is Customs Chronicle,” I said, “but this is not a law and it has not been voted by the Parliament. You cannot make copies of my ID card.”

Here the lady with a swift move showed some receipt with her name on it certifying that she passed a training for work with a personal data.

“Why do you need to know that I have brown eyes?” I asked them “In the Law for Protection of Personal Data there is a clause which says that you should not collect more data than those necessary.”

She looked me in the eyes without understanding the joke (on the Bulgarian ID cards it is written the colour of the eyes), and here I understood that the cause for protection of my personal data is lost and that I will have to allow the State to break the law in order to be able to collect my t-shirts.

And then politely guided I headed to the place which is famous that has “xerox” in it which is…

Desk 21

The “xerox” at the Customs Office is not cheap at all. The service costs 0.40 BGN per page. After two unsuccessful attempts I had to pay 2 BGN for copying services which on the top of that break the law since they are photocopying my ID card.

I asked the lady “why it is so expensive” and she answered me “don’t you see that two pages jammed!” That is how I understood that failures of the Customs equipment is not a problem of the Customs but of those who are using their services. That was me.

And then with my filled form for EORI numbder and illegally copied ID card I headed to…

Room 13 – EORI number

Room 13 is not a counter. It is located at the third floor of the Customs Office – where the administration is. The purpose of this whole room is one person, probably University graduate, to enter manually filled by you EORI form in a computer and to print a page on a printer.

“For what number are you here for?” He asked.

“What are the options?” I asked.

“The way I see it – for temporary.” Said the person and after that closed the door.

Later on I discovered that I can have permanent registration and to save these bullshit next time but this was when I read couple of forums.

The next 30 minutes are spent in a foyer with full ashtrays, old computers and doors propped up with piles of CDs. Smells awful of cigarettes but the Law for Public Spaces obviously is not applicable in here.

After 30 minutes of waiting in front of Room 13 I had the same form but this time printed on a printer and a little bit prettier. Plus a piece of paper with the number which looks like:

АХХХХХХХХХХZZZ001

where the ten “х” are my personal ID number. While handing the papers the person from room 13 conspiratorially explained that I need to go to the Customs Manager for signature.

“The Manager? Are you sure? Where is he.”

“She is on the first floor, behind the columns”

“Which counter or room is this?” I asked.

“No number. Because they have not changed the signboard yet.”

Feeling some new restructuring I headed to…

The Customs Manager

There is no room number or counter. The manager is a busy woman. So busy that she has two secretaries. I entered in something like a waiting room in which there are no chairs for those who have to wait. I gave the secretaries the paperwork for signature. They waited too and couldn’t dare to enter Manager’s room. The Manager comes out screaming at another woman and the secretaries timidly approach her asking to sign my EORI number.

Without reading she signed the documents with a swift move in the corridor a little bit angry that they bother her with this. The way the whole thing is handled made me thought that there is still no established procedure how this is supposed to be done regardless of the fact that EORI numbers are issued for over a six months now.

Trying to understand why the Customs Manager has to sign temporary document for import of couple of t-shirts I headed back to…

Desk 17

At the well known registry office they looked severely at me because of the nano-scandal related to the personal data which happen about an hour ago. But they were proud that I have surrendered the precious victim – copy of my ID card. Then they placed another stamp on my EORI number and with fresh look I headed to…

Desk 28

Where was supposed to be filled the customs declaration. After I gave my temporary EORI number some clerk pushed in my hands the customs declaration with some tariffs, etc. With all this I had to go back to the new part. The declaration for my surprise comes with a floppy disk from the end of nineties which I have to present at counter “9 or 10″. I paid 8 BGN for the service.

Judging from all that happened so far I figured out that in Sofia Customs Office they never heard of the miracles of the local area network (LAN). I headed to the new part and in particular…

Desk 9

Here everything is shiny brand new with new computers. They are so new that they even don’t have floppy disk drives. And I have a floppy disk in my hand. The clerk at counter 9 took my documents and surprisingly pushed the floppy disk into an external USB floppy disk drive. I can’t believe that there is even such a thing. The whole system looks like someone put a rocket to a horse cart.

The clerk stamped my declaration and sends me back to the “Bank”, which is located at…

Desk 14

This is a joint-venture between UniCredit Bulbank and “Post Office at the Sofia Customs Office”. Thanks God at least here I don’t have to fill a form. For 42.53 BGN customs duties and VAT I have to pay 3 BGN Bank fee. I asked “why it is so expensive?”, but the answer was “These are the tariffs.” I headed back to…

Desk 9

Where I gave copy of the receipt proving that the customs duties and VAT are paid and the lady finally said that I have to wait for the money “to arrive”.

“Why do I need to wait – here is a copy from the Bank that I have paid,” I told her “what is the connection between the Customs and the Bank?”

“Hold on.”

30 minutes later obliviously the money “arrived” and the clerk proudly called me holding the customs declaration on which there was a nice stamp “Allow receiving of the goods.” And now I can proudly head back to…

Desk 30

Where my package with t-shirts was waiting for me.

But “We do not have the receipt for the values fee”, the lady said.

Here I have to go back to where it all started -

Desk 23

Where I paid 4 BGN “fee for values”, which before and now nobody can explain why it is collected. And back to

Desk 30

Where I took my opened box with the poor t-shirts in it and now I can go back to the office after 4 unforgettable hours spent at Sofia Customs Office…

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One year after the first publication for the cause “Bulgarian Christmas” here comes a new one.

It is getting harder now to hide all problems and especially since it became obvious that from 14 733 609 BGN donated so far only 4 560 000 BGN have been donated to people in need. What happened with the rest? Good question…

I will repeat part of the last year publication as in fact nothing has been changed since then:

So far (this is the sixth year) “Bulgarian Christmas” is still not registered under the laws of the country as legal entity. There is no clear information who physically orders the payments and it is not known publicly who are the people in the committee that allocates the funds. For five years there isn’t any single financial report nor that any of the sort have been given to the State auditors and even worse – there is no public information for anything of that kind.

If someone still wants to donate something there are many charities in Bulgaria properly registered and operating for many years who publish their projects and financial information so it is better to look for one of them instead of throwing money away.

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An article in Capital newspaper is trying to revitalise the dead project of Winslow called Winslow Gardens. Probably this is the last effort to find more buyers before they go bust.

It is very interesting why they don’t mention about the other “profitable” investments in Bansko – Mountain Residence (1, 2, 3, 4, etc) and the unbelievable revenue earned there.

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The prices of properties in Bulgaria fall with 28% compared to the same period last year. In Sofia the fall is 6% while in Montana and Vidin the fall is respectively 16% and 10%.

The highest average price of property is in Varna – 1770 BGN followed by Sofia – 1640 BGN and Burgas 1379 BGN.

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Between 2008 and 2009, Bulgarian households lost BGN 83 bn, or 130% of the country’s GDP, from the bursting of the real estate bubble.

Read the full article in Klassa newspaper.

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2. Bulgaria Real Estate Agents Guide
3. Bribes in the public sector exceed BGN 1 bn in 2009

Recent article in Capital newspaper triggered a very good comment on the way the things are in general in Bulgaria. It would have been funny if it was not so true but I am translating it hoping to help you explain some of the things here…

There is no such county, even the richest which has the money to allow such things as:

• filling one and the same hole on the road every year
• VAT return for jeeps to use on off-road parties
• repairs of sidewalks which minutes after the workers leave and turned into free parking for cars and trucks from the entire city and the new tiles for one month turn into pavement road from mud, broken tiles and motor oil
• 8 positions for military people in each of the 24 regions of Sofia city
• where the Municipality does not fine for parking on the green areas because the traffic police does not want to disclose the names of the owner of the vehicle
• where paid maternity leave is 24 months while in far richer countries it is between 3 to 6 months
• where investing in financial pyramids is called “Life insurance with savings element” and is released from taxation
• where you start school at 7 years old and graduate at 20 years old (In England at this age are the officers-pilots of Hornet fighter/attack aircraft)
• where it is considered as very wise thing to increase artificially your salary few months before giving birth and then to receive 2 years 90% of that salary as “maternity salary”. And in the same time the bank officers to offer you loan with which to enlarge your hollow salary which in itself to return after five months from the payments of the Social Security Institute
• where French and Germans are teaching us how to avoid taxes by paying the meals with printed by them coupons called “vouchers for employer’s meals” for which we pay them 10% commission
• where there are 1 million invalids from which 80% discovered that around the syndrome “car owned by invalid”
• where the municipalities are too lazy to ask payment for parking on the sidewalks from all schmoes who deliberately did not bought garage in order to buy for their cars new aluminum wheel rims, BOSE car audio, air conditioning, etc fancy equipment for the same value
• where the municipalities are too lazy to ask payment for parking on the sidewalks from all schmoes who keep for over 40 years their old cars outside just to store inside empty jars or shovels for the vineyards

Hope that your figured it out now why we are still where we are… Original of this comment in Bulgarian language.

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